Effective 29 November 2021, ASX will amend the ASX Clear (Futures) Operating Rules to clarify that:
· when cash or securities are deposited with ASX as margin, commitment or excess deposits then that cash or those securities become the absolute property of ASX; and
· in the event that a Clearing Participant defaults, ASX may re-hypothecate some or all of those securities for purposes relating to the management of the Clearing Participant’s default.
ASX issued a formal consultation paper with respect to these changes on 27 July 2021. ASX received three submissions and feedback in response to these changes was largely positive. ASX responded to questions on these changes bilaterally. ASX is adopting the changes in the same form that it consulted on them.
A copy of the amended ASX Clear (Futures) Operating Rules showing the above changes is available here:
Senior Manager, Derivatives Clearing Services